Preliminary Results and Interim Management Stat...

Kenmare Resources plc ("Kenmare" or "the Company")

                    Kenmare  Preliminary Results
                 For the year ended 31 December 2008
                           (LSE/ISE: KMR)


17 April 2009

Chairman's Statement

Dear Shareholder,


Over the past  year we have  worked with one  main focus: to  improve
production. We are now in a much improved position to deliver on  our
targets for the Moma Titanium Minerals Mine.

While we have made significant improvements in production levels over
the past year,  there have  also been  significant challenges.  These
included  Cyclone   Jokwe,  successive   missed  deadlines   by   our
construction  contractor  and  aspects   of  the  plant  which   were
demonstrated as not being 'fit  for purpose' frustrating our  ability
to reach full production.  However, the Board remains confident  that
the mine will reach full production by the end of this year and  that
the plan to get there is both achievable and realistic.

Key steps taken by the Board and Kenmare's management team to  ensure
that these targets are reached by late 2009 include:
-Development of a detailed plan which addresses production issues and
their solutions;
-Implementation of a detailed Performance Improvement Project ("PIP")
to rectify deficiencies in the plant and equipment, 75% complete; and
-Appointment of  a new  Chief  Operating Officer  and a  new  General
Manager for the mine.

In November  2008, Kenmare  required the  construction contractor  to
participate in a set  of performance tests on  the facilities at  the
mine.  These tests were witnessed by a jointly appointed  independent
observer and,  as we  anticipated,  failed  to achieve  the  required
performance criteria  outlined in  the contract  in a  number of  key
areas. This enabled Kenmare to present  the contractor with a set  of
projects we considered  necessary to  reach full  production, and  to
insist that implementation commenced immediately.

This set  of  projects,  known  collectively as  the  PIP,  is  being
implemented largely by  the contractor  with close  involvement by  a
dedicated Kenmare  project team  to ensure  adherence to  the  agreed
schedule and  scope  of  work.  In the  three  months  since  it  was
initiated, the PIP  has been  75% completed across  326 action  areas
with all necessary new equipment  either delivered, in transit or  in
manufacture.  While  most  tasks  within  the  PIP  fall  under   the
contractor's responsibility,  Kenmare  is itself  responsible  for  a
sub-set of  tasks necessary  to achieve  full production  of  800,000
tonnes per annum of ilmenite plus co-products rutile and zircon.

The  PIP  is  addressing  key  areas  that  are  vital  to  achieving
production targets, including the  upgrade of the dredge  hydraulics,
slimes and  tailings  disposal  pumping  systems,  material  handling
systems in the mineral separation plant, and provision of  additional
separation equipment  in the  ilmenite, zircon  and rutile  circuits,
combined with a  new ilmenite  reject scavenging  system to  optimise
recoveries and product quality. Most of the work has to be  completed
before  achieving   significantly   higher  production   levels   and
implementation involves  some disruption  of  production as  work  is
carried out. Nonetheless,  production of  heavy mineral  concentrate,
the limiting parameter, increased by 18% in quarter 1, 2009  compared
with quarter 4, 2008.

Kenmare has  recruited  a new  Chief  Operating Officer  and  General
Manager for  the  mine.   Both  have  successful  track  records  and
considerable experience in the mineral sands industry in South Africa
and Australia,  which will  benefit  the mine.  They have,  in  turn,
appointed a  number  of  experienced  personnel  to  key  mining  and
processing positions, further strengthening the capacity of the  mine
to deliver on production targets.

Drilling completed during 2008 resulted in an upgrade of an  Inferred
Resource at Namalope, the orebody  on which the dredges are  working,
to a Probable Reserve.  As a  result, the heavy mineral reserves  for
the Namalope orebody increased from  21 million tonnes to 26  million
tonnes of  total  heavy  minerals, despite  the  consumption  of  0.6
million tonnes during 2008.  The new reserves have added an estimated
five years of mine life to the Namalope deposit.

At our Board  meeting on 16  April 2009, Dr.  Alastair Brown  retired
both from his executive position as Director of Geology and from  the
Board.  Alastair was with Kenmare  from 1987, providing the  resource
definition which has  enabled the financing  and construction of  the
mine.  He worked in  difficult circumstances with limited  resources,
but with  rigorous methodology  which  has withstood  examination  by
third party experts  throughout the financing  process.  We all  wish
Alastair well  in  his retirement  and  thank him  for  his  enormous
contribution.

The present difficulties faced by the world's economies are impacting
on the uptake of titanium mineral products.  In particular there  has
been  strong  inventory  de-stocking,  reducing  demand  by   pigment
producers, our key market.  The bulk of the mine's planned production
for 2009  is  covered  under marketing  contracts  and  the  shipment
schedule for the  coming months  remains busy.  We  are hopeful  that
this inventory  de-stocking  cycle  is nearing  completion  and  that
normal market  conditions,  even  if at  reduced  levels,  will  soon
resume.

In September 2008, we initiated a dialogue with our lenders with  the
objective of  preserving liquidity.   As a  result, I  am pleased  to
report that  lenders  agreed to  a  deferment of  capital  repayments
during 2009, to allow us use funds in the Contingency Reserve Account
(US$15 million) for project purposes, and to defer the date by  which
we  would  otherwise   have  been  required   to  achieve   financial
completion. This arrangement, along with existing financial resources
and an invoice discounting  facility being arranged  with one of  the
lenders, will provide  the additional liquidity  necessary to  enable
Kenmare to achieve production ramp-up plans.

The profit after tax for the  year is US$0.3 million and arises  from
deposit interest earned  and foreign exchange  gains, less  corporate
and exploration costs. During 2008, operating and financial costs net
of revenue earned  for the  period, totalling  US$60.1 million,  were
capitalised in property, plant and equipment as construction was  not
yet complete and as the mine  was not yet capable of operating  close
to design capacity. Senior and  subordinated loans drawn at the  year
end amounted  to US$334.8  million, US$121.7  million of  which  were
Euro-denominated loans.

At full production, we  expect the mine's operating  cost will be  in
the lowest quartile  for titanium feedstock  producers. The  resource
base, one  of  the largest  in  the world,  will  support  successive
expansions  of  capacity.  We  remain  confident  that,  despite  the
disappointing  delays  in  achieving  full  production,  the   mine's
potential is enormous and we expect it will provide huge value to our
shareholders.

Charles Carvill
Chairman

This release incorporates Kenmare's Interim Management Statement
relating to the period from 1 January 2009 to 16 April 2009.

For more information:

Kenmare Resources plc
Michael Carvill, Managing Director
Tel: [phone]
Mob: + 353 87 674 0110

Tony McCluskey, Financial Director
Tel: [phone]
Mob: + 353 87 674 0346

Murray Consultants
Elizabeth Headon
Tel: [phone]
Mob: + 353 87 989 7234

Conduit PR Ltd
Leesa Peters/Fiona Hyland
Tel: [phone]
Mob: [phone]

                      www.kenmareresources.com


                        KENMARE RESOURCES PLC
                         PRELIMINARY RESULTS
                    CONSOLIDATED INCOME STATEMENT
                 FOR THE YEAR ENDED 31 DECEMBER 2008


                                                    2008         2007
                                                 US$'000      US$'000
Continuing Operations

Revenue                                                -            -

Operating expenses                                 (957)     (12,557)

Finance income                                     1,302        2,925

Profit/(loss) before tax                             345      (9,632)

Income tax expense                                     -            -

Profit(loss) after tax for the financial             345      (9,632)
year

Attributable to Equity holders                       345      (9,632)


                                            US$ cent per US$ cent per
                                                   share        share
Earnings/(loss) per share: Basic                  0.045c      (1.40c)
Earnings/(loss) per share: Diluted                0.042c      (1.40c)





                        KENMARE RESOURCES PLC
                         PRELIMINARY RESULTS
                     CONSOLIDATED BALANCE SHEET
                       AS AT 31 DECEMBER 2008


                                                               2008     2007
                                                            US$'000  US$'000

Assets
Non-Current Assets
Property, plant and equipment                               539,672  486,960


Current Assets
Inventories                                                   6,405    5,631
Trade and other receivables                                   3,033    4,842
Cash and cash equivalents                                    40,536   56,203
                                                             49,974   66,676

Total Assets                                                589,646  553,636

Equity
Capital and reserves attributable to the
Company's equity holders
Called Up Share Capital                                      66,178   61,496
Share Premium                                               145,088  121,501
Retained Losses                                            (30,791) (31,136)
Other Reserves                                               42,668   41,562
Total Equity                                                223,143  193,423

Liabilities
Non-Current
Liabilities
Bank loans                                                  299,982  299,570
Obligations under finance lease                               2,264    2,292
Provisions                                                    4,179    2,505
                                                            306,425  304,367

Current Liabilities
Bank loans                                                   34,842   26,273
Trade and other payables                                     25,236   29,573
                                                             60,078   55,846

Total Liabilities                                           366,503  360,213

Total Equity and Liabilities                                589,646  553,636





                        KENMARE RESOURCES PLC
                         PRELIMINARY RESULTS
                  CONSOLIDATED CASH FLOW STATEMENT
                 FOR THE YEAR ENDED 31 DECEMBER 2008



                                                        2008     2007
                                                     US$'000  US$'000


Cashflows from operating activities
Profit/(loss) for the year                               345  (9,632)
Adjustment for:
Foreign exchange movement                            (5,472)    1,680
Operating cash outflow                               (5,127)  (7,952)

Decrease/(increase) in inventories                       408  (5,631)
Decrease/(increase) in trade and other                 1,809  (4,032)
receivables
(Decrease) in trade and other payables               (4,414)  (7,896)
Increase in provisions                                 1,674      140
Cash used by operations                              (5,650) (25,371)

Finance costs                                       (13,739) (12,249)

Net cash used in operating activities               (19,389) (37,620)

Cashflows from investing activities
Addition to property, plant and equipment           (39,050) (67,027)

Net cash used in investing activities               (39,050) (67,027)

Cashflows from financing activities
Proceeds on the issue of shares                       28,269    3,542
Proceeds on shares to be issued                            -   14,249
Repayment of borrowings                             (20,335)  (4,424)
Increase in borrowings                                29,316   59,691
Increase in obligations under finance leases              50    2,242

Net cash from financing activities                    37,300   75,300

Net decrease in cash and cash equivalents           (21,139) (29,347)

Cash and cash equivalents at beginning of the         56,203   87,230
year
Effect of exchange rate changes on cash and cash       5,472  (1,680)
equivalents

Cash and cash equivalents at the end of the year      40,536   56,203





                  NOTES TO THE PRELIMINARY RESULTS


Note 1.  Basis of Accounting and Preparation of Financial Information

The  preliminary  results  have  been  prepared  in  accordance  with
International Financial Reporting Standards (IFRSs) as adopted by the
European Union. The financial statements  are prepared in US  Dollars
under the historical cost convention.

The  financial  information  presented  above  does  not   constitute
statutory accounts within the meaning of the Companies Acts, 1963  to
2006. A copy of the accounts  in respect of the financial year  ended
31 December 2008 will be annexed  to the Annual Return for 2009.  The
auditors have made a report  without qualification of their audit  of
the financial statements  in respect  of the year  ended 31  December
2008. In forming their opinion  they have considered the adequacy  of
the disclosures  made  in  the financial  statements  concerning  the
recoverability of property, plant and equipment and amounts due  from
subsidiary undertakings, the realisation of which is dependent on the
successful development of economic  ore reserves, successful  ramp-up
of  production  which  includes  the  rectification  of  mining   and
processing equipment,  and  the continued  availability  of  adequate
financing including  the  waivers  and amendments  to  the  financing
documents referred  to  in  note  6  below.   Their  opinion  is  not
qualified in this respect.

The Directors approved  the financial  statements in  respect of  the
financial year ended 31 December 2008 on 16 April 2009. The statutory
accounts for the year ended 31 December 2007 prepared under IFRS upon
which the  auditors have  issued an  unqualified opinion,  have  been
filed with the Registrar of Companies.


Note 2.  Earnings/(Loss) per share

The calculation of  the basic and  diluted earnings/(loss) per  share
attributable to the ordinary equity holders of the parent is based on
the profit after taxation of US$345,000 (2007: loss US$9,632,000) and
the weighted average number  of shares in issue  during 2008 for  the
purposes of  basic earnings/(loss)  per share  of 760,160,548  (2007:
689,587,755) and for diluted earnings/(loss) per share of 825,386,342
(2007:755,652,168).

In 2007 the basic loss per share  and the diluted loss per share  are
the same, as the effect of the outstanding share options and warrants
are anti-dilutive.


Note 3.  Property Plant and Equipment




                     Plant Buildings    Mobile  Fixtures Construction Development   Total
                                                       &
                         &         & Equipment Equipment  In Progress Expenditure
                 Equipment  Airstrip
                   US$'000   US$'000   US$'000   US$'000      US$'000     US$'000 US$'000
Cost
At 1 January             -         -         -         -      265,718     140,751 406,469
2007
Transfer from      255,175     3,812     5,919     1,949    (266,855)           -       -
construction in
progress
Additions during     2,327         -       103       586       47,219      37,069  87,304
the year
Impairment
during the year          -         -         -         -            -     (1,455) (1,455)

At 1 January       257,502     3,812     6,022     2,535       46,082     176,365 492,318
2008
Transfer from
construction in      2,403         -       177        78      (2,658)           -       -
progress
Reclassification   (1,182)         -         -         -            -           - (1,182)
to inventory
Additions during       793         -       525       135        2,281      60,041 63,775
the year
Impairment
during the year          -         -     (486)         -            -           -   (486)

At 31 December     259,516     3,812     6,238     2,748       45,705     236,406 554,425
2008

Accumulated
Depreciation
At 1 January             -         -         -         -            -           -       -
2007
Charge for the
year                 2,775        74     2,207       302            -           -   5,358

At 1 January         2,775        74     2,207       302            -           -   5,358
2008
Charge for the       7,445       191     1,252       820            -           -   9,708
year
Impairment
during the year          -         -     (313)         -            -           -   (313)

At 31 December      10,220       265     3,146     1,122            -           -  14,753
2008

Carrying Amount
At 31 December     249,296     3,547     3,092     1,626       45,705     236,406 539,672
2008

At 31 December     254,727     3,738     3,815     2,233       46,082     176,365 486,960
2007

A construction contract for  the engineering, procurement,  building,
commissioning  and  transfer  of  facilities  at  the  Moma  Titanium
Minerals Mine in  Mozambique was entered  into on 7  April 2004.  The
Contractor is a joint venture formed for this project by subsidiaries
of Multiplex Limited and Bateman B.V. Construction in progress  shown
in a separate note in 2007 has been included above.

The construction contract was amended in December 2006 to provide for
among other things,  taking-over the Moma  Titanium Minerals  Project
works in sections. At 31 December 2008, the only remaining section to
be taken over was the roaster.

During the  year  the  mining  reserve  was  increased  to  represent
approximately a 21 year life at expected production levels. This  has
resulted in a change in the unit of production depreciation which  is
calculated using the quantity of material extracted from the mine  in
the period as a  percentage of the total  quantity of material to  be
extracted in current and future periods based on the mining reserve.

Included in plant and equipment are capital spares of US$0.5 million.
The Company has reclassified consumable spares included in  property,
plant and equipment of US$1.2 million into inventory.

Substantially all the property, plant and equipment will be mortgaged
to secure banking facilities granted, as detailed in note 6.

The recovery of property, plant  and equipment is dependent upon  the
successful operation of  the Moma  Titanium Minerals  Mine, which  in
turn is dependent on the successful ramp-up of production,  including
rectification  of  mining  and  processing  equipment  and  continued
availability of  adequate funding  for the  mine. The  Directors  are
satisfied that at the  balance sheet date  the recoverable amount  of
property, plant and equipment exceeds  its carrying amount and  based
on the planned mine production levels that the Moma Titanium Minerals
Mine will achieve  positive cash flows.  No impairment provision  has
been made in respect of property, plant and equipment.


Note 4. Trade and Other Receivables


                     2008    2007
                  US$'000 US$'000

Trade receivables     593   2,922
Other receivables   2,343   1,851
Prepayments            97      69
                    3,033   4,842


During the year  an invoice  discounting facility was  in place  with
Barclays Bank plc.  The invoice  discounting fee was  LIBOR plus  1%.
This facility expired in  January 2009. The  Group is arranging  with
Absa Bank, an existing senior lender, a replacement of this facility.
The invoice discounting  facility is  an important  component of  the
Group's  financing  arrangements  and   the  Group  expects  that   a
replacement facility will be available later this year.
Of the  US$0.593 million  outstanding from  trade receivables  above,
US$0.52 million  is less  than  30 days  and  an amount  of  US$0.588
million  has  been  received  post  year  end.   There  has  been  no
impairment in trade receivables during the year and no allowance  for
impairment has been provided for during the year or at the year end.
Included in other receivables  is an amount  US$1.3 million due  from
the contractor, for repair and other  costs incurred by the Group  on
behalf of the contractor which are refundable under the terms of  the
construction contract. The Directors are satisfied that these amounts
can be deducted from amounts due to the contractor.
Included in other receivables is an amount US$0.7 million due from an
insurance  claim.  The  Directors   are  satisfied  this  amount   is
recoverable.


Note 5. Cash and Cash Equivalents




                                2008    2007
                             US$'000 US$'000

Immediately available
without restriction           19,548  26,497

On fixed short-term deposit:
Contingency Reserve Account   15,292  26,048
Shareholder Funding Account       24      25
Other short-term deposit       5,672   3,633
                              40,536  56,203


Cash and  cash  equivalents  comprise  cash  balances  held  for  the
purposes of meeting short-term cash commitments and investments which
are readily convertible to a known amount of cash and are subject  to
an insignificant  risk  of change  in  value. Where  investments  are
categorised as cash equivalents, the related balances have a maturity
of three months or less from the date of investment.

Cash at bank earns interest at floating rates based on daily  deposit
bank rates.  Short-term  deposits are  made  for varying  periods  of
between one day and three months, depending on the cash  requirements
of the Group, and earn interest at the respective short-term  deposit
rates.

The Contingency Reserve  Account and Shareholder  Funding Account  on
fixed short term deposit  are amounts held  in support of  conditions
required for Senior and Subordinated Loans as detailed in note 6.

The amount required by the Senior and Subordinated Loan documentation
to be maintained in the Contingency Reserve Account from time to time
depends on  a  calculation  involving capital  and  operating  costs,
interest and  principal payments,  and reserve account  contributions
required to achieve completion under the Project Loans as referred to
in note 6.


Note 6. Bank Loans


                                                      2008     2007
                                                   US$'000  US$'000

Senior Loans                                       188,844  210,694
Subordinated Loans                                 145,980  115,149
                                                   334,824  325,843


The borrowings are repayable as follows:
Within one year                                     34,842   26,273
In the second year                                  36,633   28,283
In the third to fifth years inclusive              109,899  101,299
After five years                                   153,450  169,988
                                                   334,824  325,843
Less: amount due for settlement within 12 months  (34,842) (26,273)
Amount due for settlement after 12 months          299,982  299,570


                                                      2008     2007
                                                   US$'000  US$'000
Analysis of borrowings by currency
Euro                                               121,666  119,253
US Dollars                                         213,158  206,590
                                                   334,824  325,843



The Bank Loans have been made  to the Mozambique branches of  Kenmare
Moma  Mining  (Mauritius)   Limited  and   Kenmare  Moma   Processing
(Mauritius) Limited (the Project Companies).  Bank loans are  secured
by substantially all  rights and  assets of the  Company (other  than
cash and cash equivalents listed in note 5 as "Immediately  available
without restriction"  of  US$19.5 million  at  31 December  2008  (31
December 2007: $26.5 million)) and  the Moma Titanium Minerals  Mine;
 security agreements  over shares  in the  Project Companies;  and  a
Contingency Reserve and  Shareholder Funding Account  as detailed  in
note 5.

The Company has guaranteed the Bank Loans during the period prior  to
completion.  The final date for achieving completion was formerly  30
June 2009.  The  Deed of  Waiver and  Amendment dated  31 March  2009
extended this  date  to 31  December  2012.  Completion  occurs  upon
meeting certain tests  on a phased  basis, including installation  of
all  required  facilities,  meeting   certain  cost  and   production
benchmarks and social and environmental requirements (which must take
place by  31 December  2010), meeting  marketing requirements  (which
must take place by  30 June 2011), and  meeting legal and  permitting
requirements, and  filling  of  specified  reserve  accounts  to  the
required levels. Upon completion, the Company's guarantee of the Bank
Loans will terminate.  Failure  to meet any of  the phased tests  or,
subject to  extension  for force  majeure  not to  exceed  365  days,
failure to achieve completion by 31 December 2012, would result in an
event of default under the Senior and Subordinated Loan documentation
which, following notice, would give  Lenders the right to  accelerate
the loans against the Project Companies, and to commence a  two-stage
process allowing the Lenders to exercise their security interests  in
the shares and assets (including  accounts) of the Project  Companies
and in the  Contingency Reserve Account  and the Shareholder  Funding
Account.

On 30 January 2009 a Deed of Waiver and Amendment was entered into by
the Project Companies whereby  the principal repayment  due on the  2
February 2009 was deferred and spread over the remaining life of  the
loan facilities commencing  on 1 February  2010. On 31  March 2009  a
second Deed of Waiver and Amendment  was entered into by the  Project
Companies whereby the senior principal repayment due on the 4  August
2009 was also deferred and spread over the remaining life of the loan
facilities commencing  on  the  1  February  2010.  The  Subordinated
principal repayment due on the 4 August 2009 was deferred and  rolled
up  for  repayment  from  future  available  project  cash  flow   in
accordance with the terms of the initial loan agreements.

The revised repayment schedule based upon the Deeds of Waiver set out
above is as follows:


                                                            2008     2007
                                                         US$'000  US$'000
The borrowings are repayable as follows:

Within one year                                            5,160   26,273
In the second year                                        40,649   28,283
In the third to fifth years inclusive                    121,946  101,299
After five years                                         167,069  169,988
                                                         334,824  325,843
Less: amount due for settlement within 12 months         (5,160) (26,273)
Amount due for settlement after 12 months                329,664  299,570



The Directors have prepared cash  flow projections for the  estimated
life of the Moma Titanium Minerals Mine. These forecasts are based on
the planned  mine  production  levels  which  are  dependent  on  the
successful ramp-up  of  production through  the  project  improvement
plans and  continued adequate  funding for  the mine.  The cash  flow
projections based on planned  mine production levels, arrangement  of
an invoice discounting  facility referred  to in note  4 and  revised
financing arrangements detailed above  show that the mine  operations
will result  in positive  cash flows,  and that  the mine  will  have
adequate funding for a period of not less than twelve months from the
date of  this report.  Accordingly the  Directors have  prepared  the
financial statements on the basis that the Group is a going concern.

Note 7.  2008 Annual Report and Accounts

The Annual Report and Accounts will be posted to shareholders in  due
course.

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